Shipping costs can account for a considerable percentage of your company’s expenses, whether you ship nationally or internationally. Determining ways to reduce costs can help your company to grow more effectively. Often, significant savings are achievable by implementing some simple changes.
Choose the Right Transportation
It’s important to know which mode of transportation is the most cost-effective; for example, ocean shipping is usually cheaper than air and especially when shipping internationally. If you ship nationally, explore rail transportation as it is usually more cost-effective than trucks. Understanding transportation costs will help you determine the best mode based on deadlines and budgets. Sometimes combining modes of transport can be the most cost-efficient.
Frequently, smaller shipments or smaller container loads can be consolidated into full container loads or larger shipments. Consolidating shipments can save money, but it may increase transportation times.
Understand Your Supply Chain
Make sure you understand every stage of your supply chain, as this will allow you to identify inefficiencies more easily and to trim costs where necessary. Also, when you understand your supply chain more fully you can react more quickly to problems if and when they arise.
Understand the Costs of Importing Goods
If you import goods from overseas to reduce your expenses, make sure you factor in duties, transportation costs and brokerage fees. Sometimes paying slightly more for inventory produced closer to home can be more cost-effective.
Make Sure Inventory Is Insured
Make sure your inventory is properly insured and that your supplier’s insurance is up-to-date.
Only Expedite Shipping When Necessary
When shipments are late, inventory is often shipped as a priority or is expedited. Cut costs by determining which products are needed immediately, shipping the remainder as a standard shipment.
Automate Wherever You Can
Automating processes and procedures can help reduce paperwork, preventing invoicing errors and saving you time and money.
Use the Right Logistics Software
Using the right logistics software can save you a considerable amount of time and money, ensuring goods are packed efficiently and are shipped using the most cost-effective carriers. For example, our BlackBox software follows precise loading rules, ensuring delicate items are packed correctly, reducing the risk of damaged inventory, and making sure weight restrictions are always met. Containers are selected on the fly based on the customer order and are loaded correctly, eliminating unnecessary voids and the need for fill materials. Selecting the right cartons reduces waste and packaging materials and is a greener and more cost-effective solution.
Discover how we can help your company increase shipping efficiency and reduce costs by contacting MagicLogic for a consultation and demonstration of our software solutions.